Friday pop keeps rally on track

All’s well that ends well.

US stocks got their latest record highs out of the way early last week—like, in the first hour of trading on Monday—before slumping for a few days until, finally, rebounding on the back of a strong jobs report Friday morning.

Small-caps were a glaring exception to the rally, as they reversed their recent strength to close out the week with a loss. For the week, the S&P 500 SPX closed up 0.35%, the Nasdaq 100 (NDX) gained 0.11%, the Dow Jones Industrial Average (DJIND) rallied 0.4%, and the Russell 2000 (RUT) dropped -0.98%.

Index comparison, 12/4/17 – 12/8/17

Source: OptionsHouse

Although the market interrupted its intra-week downtrend with an up close on Thursday, it was Friday’s rally after a solid employment report that allowed the broad market to end up in the green. Unemployment held steady at 4.1% while payrolls (+228,000) beat the estimate by nearly 40,000. (Last month’s number was revised downward by 17,000, though.)
S&P 500 (SPX), 10/30/17 – 12/8/17

Source: OptionsHouse

The top-performing S&P sectors for the week were Financials (+1.5%), Industrials (+1.4%), and Consumer Staples (+0.6%), while Utilities (-1%), Real Estate (-0.95%), and Energy (-0.7%) were the biggest drags.
S&P 500 (SPX), 12/26/16 – 12/8/17

Source: OptionsHouse

This week features a couple of potentially market-moving events: an FOMC announcement at 2 p.m. ET on Wednesday afternoon and “quadruple witching” on Friday (when stock options, stock index futures and options, and single-stock futures all expire), which is often good for some end-of-the-week volatility.

Other US economic releases include: PPI-FD (Tuesday); Consumer Price Index, FOMC Meeting Announcement (Wednesday); Retail Sales, Business Inventories (Thursday); Quadruple Witching, Industrial Production (Friday).


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